What are People Saying About Your Company and Who is Saying it?
Recently someone sent me a link to a extremely positive press release from GTSO Resources (OTCQB: GTSO) on tungsten mentioning a few tungsten companies. We work with several tungsten companies and so my initial thought is positive. In these tough market conditions, good news is of value, no? But after a second look at GTSO’s website, www.gtsoresources.com, a couple alarm bells went off.
1. No Properties: They are talking about tungsten, but they don’t actually have any properties mentioned on their site. 2. No Financials: Trading on the OTCQB at $3.00, there are no financial statements on their website and as per EDGAR, they only have $979 in cash on hand. 3. Management: They only have one person listed on their management team who has no mining experience.
I’ve been told that these guys are “the poster child of a shady stock promotion and they chase the buzz”. One of the Resource Investing News reporters actually caught onto this story over a year ago and wrote an article about it. “Good Investment or Scam: Green Technology Solutions”.
In these markets, investors are perhaps even more susceptible to slick pitches without substance. With that said, I encourage you to have a look at the article and remind yourself and your investors that “bad” companies are out there, they do exist and this is why due diligence is so important. For IR professionals, it's increasingly important to keep tabs of who is pushing information about your company and be an active voice in addressing questions/comments about what people are saying.
You can’t control all information written about your companies but you can control how you address positive, negative, factual and non factual information about your company.
Tools like Facebook, Twitter and LinkedIn are great mediums to follow what people are talking about. Use them not just to listen but to answer investor questions. Your message should be consistent with all of the other messaging from your company and always remember, only discuss publicly disclosed information
Although deemed a great movie I've posted a link to a clip of Boiler Room as a reminder that is is not what we do nor the type of companies we work with. http://www.youtube.com/watch?v=izOIOvguncU&feature=related